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Electricity supply is becoming the latest chokepoint to threaten the growth of artificial intelligence, according to leading tech industry chiefs, as power-hungry data centers add to the strain on grids around the world.

Billionaire Elon Musk said this month that while the development of AI had been “chip constrained” last year, the latest bottleneck to the cutting-edge technology was “electricity supply.” Those comments followed a warning by Amazon chief Andy Jassy this year that there was “not enough energy right now” to run new generative AI services.

Amazon, Microsoft and Google parent Alphabet are investing billions of dollars in computing infrastructure as they seek to build out their AI capabilities, including in data centers that typically take several years to plan and construct.

Enlarge / A Google sign stands in front of the building on the sidelines of the opening of the new Google Cloud data center in Hesse, Hanau, opened in October 2023. (credit: Getty Images )

On Wednesday, authorities arrested former Google software engineer Linwei Ding in Newark, California, on charges of stealing AI trade secrets from the company. The US Department of Justice alleges that Ding, a Chinese national, committed the theft while secretly working with two China-based companies.

According to the indictment , Ding, who was hired by Google in 2019 and had access to confidential information about the company's data centers, began uploading hundreds of files into a personal Google Cloud account two years ago.

The trade secrets Ding allegedly copied contained "detailed information about the architecture and functionality of GPU and TPU chips and systems, the software that allows the chips to communicate and execute tasks, and the software that orchestrates thousands of chips into a supercomputer capable of executing at the cutting edge of machine learning and AI technology," according to the indictment.

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As soon as Lars Ruiter steps out of his car, he is confronted by a Microsoft security guard, who is already seething with anger. Ruiter, a local councillor, has parked in the rain outside a half-finished Microsoft data center that rises out of the flat North Holland farmland. He wants to see the construction site. The guard, who recognizes Ruiter from a previous visit when he brought a TV crew here, says that’s not allowed. Within minutes, the argument has escalated, and the guard has his hand around Ruiter’s throat.

The security guard lets go of Ruiter within a few seconds, and the councillor escapes with a red mark across his neck. Back in his car, Ruiter insists he’s fine. But his hands shake when he tries to change gears. He says the altercation—which he will later report to the police—shows the fog of secrecy that surrounds the Netherlands’ expanding data center business.

Enlarge / Tech decommissioning businesses have been transformed from what some describe as a collection of "man with a van" outfits into a regulated industry. (credit: Lorne Campbell, Guzelian, and SWEEEP Kuusakoski)

Mick Payne remembers the moment the madness of the way we dispose of our data was brought home to him.

The chief operating officer of Techbuyer, an IT asset disposal company in Harrogate, was standing in a large windowless room of a data center in London surrounded by thousands of used hard drives owned by a credit card company. Knowing he could wipe the drives and sell them on, he offered a six-figure sum for all the devices.

The answer was no. Instead, a lorry would be driven up to the site, and the data-storing devices would be dropped inside by authorized security personnel. Then industrial machines would shred them into tiny fragments.